McDonald's: Analysis of Leadership, Globalisation and CSR Activities

This report provides an in-depth analysis of McDonald's, a globally recognized fast-food chain. It begins with an introduction to business concepts and then delves into McDonald's organizational structure, detailing the roles and responsibilities at the top, middle, and lower management levels. The report then examines the various leadership and management styles employed by McDonald's, including supportive, situational, and achievement-oriented approaches, along with classical, scientific, human relations, and bureaucratic management theories. Furthermore, it explores the effects of globalization on McDonald's, such as increased competition, economies of scale, and enhanced expansion opportunities. The report also highlights McDonald's corporate social responsibility (CSR) initiatives, discussing its efforts to balance economic, social, and environmental concerns, including its sustainability plans and sourcing practices. Finally, the report concludes by emphasizing the importance of customer-centric approaches, employee consideration, and adaptation to the dynamic business environment for maintaining a competitive edge. This comprehensive analysis offers valuable insights into McDonald's business strategies and practices.

Introduction to Business

Table of Contents
Section 1: Introduction.....................................................................................................................1
Section 2: level of organisation and responsibilities........................................................................1
Section 3: Roles and styles of leadership and management............................................................2
Section 4: Effects of Globalisation..................................................................................................3
Section 5: Organisation's CSR responses........................................................................................4
Section 6: Conclusion and Recommendation..................................................................................6
References........................................................................................................................................7

Section 1: Introduction
Business is referred to be a commercial activity which is aimed to cater needs and
expectation of people. The efforts and activities which are carried out in production and
manufacturing of products are carried out to fulfil corporate objectives of a business (Abe, 2010).
The corporate goals which can be established by an organisation can be determined in terms of
profitability and market share of business. This assignment takes into consideration working of
McDonald's. It is an renowned fast food chain operating all over the globe. The main
consideration in this report will be given to level of organisation, styles of leadership,
globalisation and finally CSR activities which are carried out by this organisation will be
discussed in this report.
Section 2: level of organisation and responsibilities
It can be said that an organisation can possess different levels in the organisation with
each of them assigned with their own distinct roles and responsibilities. McDonald's is one of the
most popular fast food and caters approximately 58 million people around the globe. The
categorisation is carried out on three crucial levels and are categorised on functional basis. A
brief description of levels of management and their responsibilities are as follows:
Top level of management: This is the most supreme level of management in an
organisation and possess board of directors, presidents and CEO's of the company. This level of
management in an organisation is known to possess highest authority in context of a company
and known to formulate objectives and policies which are to be followed by rest of the
workforce. The people working on this level are known formulate plans and policies for the
entire organisation. The major decision are to be taken by them and assure that there is a right
relations shared with distinct stakeholders of business (Albert and Beatty, 2014). They are
known to supervise operations through a distance makes major modifications for welfare of an
organisation.
Middle level management: The major elements which constitute middle level
management are general, branch and department managers. They tend to pose as a ladder
between top and lower level of management. The managers are responsible for implementation
of plans and policies which are being formulated by the top level management in an organisation.
The manager on this level are responsible to form a sub-units under their department so that there
is an right division of activities and efforts within the department. The formulation reports and
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further sending the same to the top level management is being carried out by them and finally
they are responsible for supervising activities and efforts of people ranging in the lower level
management.
Lower level management: The lower level management in an organisation consists of
supervisors, section leads and casual workforce of an organisation. The managers performing in
this level assures that employees are assigned with right tasks and making sure that customers
are served in the best manner (Runge, 2011). They emerge to be a role model for people working
in fast food outlet in context of this organisation.
It can be identified that McDonald's undertakes division on the basis of functions which
are performed within an organisation. The CEO and chairman which comprises top level
management undertakes a division on the basis of function such as finance, marketing and sales
department. The division is further carried out on the basis of Country head and state head which
comes under middle level manager and followed by employees hired to maintain finance and
accounts for the area specified.
Section 3: Roles and styles of leadership and management
The various styles and leadership which are undertaken by this fast food retailer are as
follows:
Supportive leadership approach: It can be said that McDonald's have been relying on the
democratic approaches to management in an organisation. The employees are provided with a
certain degree of freedom to perform their operations (Kim, 2012). The employee can determine
best approach through which work is accomplished and adopting for a flexible approach which
results in better performance based outcomes from employees.
Situational leadership: It can be said that contingencies can arise in any organisation and
under those circumstances leaders determine most suitable approach through which various
resources in an organisation could be managed (Alvesson and Willmott, 2012). This practice is
generally carried out till an organisation reaches back to its initial place and maintain a degree of
stability.
Achievement oriented leadership: it is an contemporary approach to leadership in which
encourages productivity and sustainability in an organisation. This approach relies on motivation
and communication which persuade team members to achieve distinct level of performance
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outcomes. This approach divides workforce into teams and motivates them to achieve collective
goals for an organisation.
The common management approach which are being employed by McDonald's are
mentioned briefly as follows:
Classical Management theory: This is one of most crucial approach which is given by
Henri Fayol. This approach focuses on function structure which has been formed for this
organisation and mainly focuses on performing tasks and activities which are good for the firm
and not considering individual preferences and importance (Kern, 2014). The focus is on right
division of work and authority is being helpful in attainment of corporate objectives.
Scientific management models: The application of scientific model is not considered
when it comes to working of McDonald's. The assessment of motion and time is helpful in
identification of right approach and measures which will helps in achievement of task in the right
manner (Anderson and et. al., 2015). The determination of right methods of working influence
productivity of business significantly.
Human Relation theory: This theory of management focuses on the relations which are
shared between workforce of an organisation. The workforce in this segment is categorised on
various grounds such as rationality, social, actualisation and complexity so that he can be
motivated with right mechanism leading to formation of productive environment within the
organisation.
Bureaucratic Approach: This theory have been provided by Max Weber and has
identified Bureaucracy to be one of the best approach when it comes to managing organisational
resources. This approach focuses on identifying a hierarchy for the organisation along with
formation of rules which are to be considered while decision making. This approach leads to
enhancing of effectiveness and efficiency when it comes to an organisation.
Section 4: Effects of Globalisation
Globalisation is referred to as intermixing of an economy with rest of the world. It is a
process which links individual, societies and economies with each other in an much improved
manner than before. It can be said that McDonald's has been impacted severely prior to evolution
of globalisation in the economy. The crucial factors which are experienced by an organisation
are as follows:
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Increasing competition: The primary affect which can be ascertained by an organisation
is a significant increase in operations of a business. The relaxation in trade regulation and
practices within economies results in increase of more number of seller selling homogeneous
products (Boswell and O'Kane, 2011). This feature directly influences buying power of
consumers as due to increase in competition there will be a significant decrease in the prices of
services as well. McDonald's is known to provide value offering therefore have experienced a
rise in the sales of products and services of this enterprise.
Economies of scale: These are referred to advantages which are availed by an
organisation with the enlargement of operations in different nations. It has been identified that
this fast food organisation operates in more than 119 countries with its 31,000 restaurants world
wide. This expansion arises needs for resources and inventories which are required to cater the
demands. Under such circumstances, this organisation can source raw materials from countries
where it is cheaply available and bulk purchasing assures that they can be procured cheaply.
Enhanced opportunities for expansion: The globalised economy provides numerous
opportunities to an organisation to grow or to enlarge their operations. The emerging market of
Singapore, china and India can be utilised by an organisation in the best possible manner so that
favourable financial results could be achieved. This organisation can make best use of this
opportunity through hiring cheap labour and availing resources at adequate prices (Damron,
2013).
Customer base: There is no denying in the fact that people have always appreciated
products and services of McDonald's for being quick, intensive and populace. It is often stated
that this organisation promotes American culture over culture of a host nation. The people who
have been impressed by American culture are known to prefer products and services of this
enterprise. There is impact on decision making as well as there is an positive change in the
advancement of technology and encouraging rational allotment to people (Haddow, Bullock and
Coppola, 2013). As of now, people all over the world recognise this brand and appreciate
services and products which are being offered by this organisation.
Section 5: Organisation's CSR responses
Corporate social responsibility is referred to an approach which involves integration of
ecological and social concerns while carrying out of business operations (Hislop, 2013). This
organisation refers an mechanism through which organisation attempts to form a balance
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between economic, social and environmental grounds. The organisation undertaking
sustainability approaches are known to cater responsibilities towards stakeholders rather than just
serving shareholders of an organisation. This pyramid of corporate social responsibility is a
model which has been given by Caroll in the year 1999 divided CSR onto four elements i.e.
Economic, legal, ethical and philanthropic responsibilities.
(Source: Carroll's CSR pyramid, 2018)
The primary responsibility of an organisation is to remain profitable so that they are able
to survive in the market for longer duration. The second level of pyramid states that all activities
and efforts of business should conform with law which has been formed by the government and
fulfil its responsibility towards the law. The next on the pyramid is ethical responsibilities which
states that only practices which perceived as right are to be carried out and business management
does not mean to cause harm to any person or party and final is that philanthropic practices
which ensure that they fulfil their responsibilities towards the society by encouraging and
supporting into leading an ideal life.
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Illustration 1: Carroll's CSR pyramid

McDonald's have been making attempts to fulfil their responsibilities towards the society
through sourcing raw material locally which helps local farmers to lead a better life. This
organisation have formed sustainability plans for 2020 in which there is an attempt to source
raw material such as coffee from verified sources along with incorporation of practices leading to
minimum wastage and energy efficiency (McDonald's Announces 2020 Corporate Social
Responsibility and Sustainability Plans, 2014). This organisation is making right use of its
authority to transform the food market in an sustainable manner.
Section 6: Conclusion and Recommendation
It can be concluded from the above report that management and leadership are two
crucial elements in context of an organisation. Globalisation and CSR are consider important
components that has to be consider in management and leadership process. Business
environment is becoming dynamic in nature and hence have to consider number of changes in
order to maintain its competitive edge and image. Globalisation process helps in integration of
several forces like customer's preferences, market conditions etc. Similarly, MacDonald also
operates in regards to all these perceptions that make it successful. Social responsibility is a
primary function that has to be fulfilled by modern business organisation in today's business
environment. Carrying out CSR activity helps in building of positive image in customer's mind
and hence results in building competitive image.
It is recommended that organisation should consider customer centred approach so that
they could be provided with right products and services. Equal consideration is paid to
employees as well as they are helpful in leading organisation to a newer height. The policies and
practices related to human resources are to be considered so that they could be provided with
right environment. This organisation have drawn criticism on the sustainability practices which
are to be highlighted so that a favourable image could be built.
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References
Books and Journal
Abe, M., 2010. Introduction: Japanese management in the 21st century. In Innovation and
change in Japanese management (pp. 1-11). Palgrave Macmillan UK.
Albert, M and Beatty, B.J., 2014. Flipping the classroom applications to curriculum redesign for
an introduction to management course: Impact on grades. Journal of Education for
Business.89(8). pp.419-424.
Alvesson, M and Willmott, H., 2012. Making sense of management: A critical introduction.
Sage.
Anderson, D.R and et. al., 2015. An introduction to management science: quantitative
approaches to decision making. Cengage learning.
Boswell, R and O'Kane, D., 2011. Introduction: Heritage management and tourism in Africa.
Journal of Contemporary African Studies.29(4). pp.361-369.
Damron, W.S., 2013. Introduction to animal science. Pearson Higher Ed.
Haddow, G., Bullock, J and Coppola, D.P., 2013. Introduction to emergency management.
Butterworth-Heinemann.
Hislop, D., 2013. Knowledge management in organizations: A critical introduction. Oxford
University Press.
Kern, R., 2014. Introduction. In Dynamic Quality Management for Cloud Labor Services (pp. 3-
7). Springer International Publishing.
Kim, J.H., Jvm Co., Ltd., 2012. Automated medicine storage and medicine
introduction/discharge management system. U.S. Patent 8,281,553.
Runge, M.C., 2011. An introduction to adaptive management for threatened and endangered
species. Journal of Fish and Wildlife Management.2(2). pp.220-233.
Online
McDonald's Announces 2020 Corporate Social Responsibility and Sustainability Plans. 2014.
[Online]. Available through: <http://www.csrwire.com/press_releases/36995-
McDonald-s-Announces-2020-Corporate-Social-Responsibility-and-Sustainability-
Plans>.
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